As Yuchai's test base for new product development and product upgrading, the laboratory is a core department of the R&D Center, mainly responsible for engine bench test, parts function test, emission test, NVH test, engine test and other special tests.

The Leading Technology Institute is responsible for technology development of engines, powertrain systems and clean-energy engine products, for Yuchai's technology project planning and establishment, technology development and research, and technology project management based on market and customer requirements, and for preparation of technologies in advance for product development through technology transfer to support the realization of Yuchai's strategic target.

The R&D team consists of more than 1,400 advanced technical talents. Among them, there are 11 enjoying the government special allowance of the State Council, 1 Bagui scholar, 1 Bagui young scholar and 3 specially-invited experts in Guangxi Zhuang Autonomous Region.According to the 2019 evaluation results of national enterprise technology centers released by the National Development and Reform Commission, Yuchai ranked first in the engine industry and fifth throughout the country.

Founded in 1995, the test center now has two test bases in Nanning and Yulin. With a cumulative fixed-asset investment of over CNY 1.35 billion and more than 100 test stands for reliability, emission and special verification capabilities, it is now the largest and most advanced engine R&D test base in China. In terms of power, the test center can carry out tests for micro, light, medium and heavy engines, achieving the widest power coverage in the industry. Moreover, it keeps pace with the world in terms of its test equipment level, and can carry out tests for China VI and Tier 4 engines to meet all the test requirements of the industry in the current stage. Particularly in terms of test capability for China VI engines, the test center can carry out real-time measurement for the number of non-volatile particles with the diameter of 23 nm-2.5 m. The measurement accuracy of its gas analyzer for ammonia gas measurement is up to 1 ppm, keeping the same with overseas well-known R&D institutions such as AVL, FEV and Ricardo and staying far ahead of its domestic peers. Through years of rapid development, the test center has a number of qualifications in the industry, including China National Accredited Laboratory (CNAL), National Engineering Laboratory for Efficient, Energy-saving and Environmental-friendly Internal Combustion Engines (the only one in the industry), and Certificate of Test Agency for Emission issued by China Classification Society (CCS), firmly grasping the discourse power in technology competition in the industry.